What is it?
0% interest home repair loans between $5,000 and $25,000 are available for Detroit
homeowners who meet eligibility requirements. 0% interest means you pay back ONLY
what you borrow - not a penny more.
The 0% Interest Home Repair Loans Program is empowering Detroit homeowners to
invest in their homes with a 10-year, 0% interest home repair loan.
Contractors will be paid directly by the 0% Interest Home Repair Loan Program. The
program will also provide construction oversight, home inspections, and mortgage and
debt counseling to applicants.
Who can apply?
Low-income homeowners can apply no matter where their home is in Detroit, as long
as their household income is less than $37,950 for one person or $54,150 for a family
of four. For the specifics, visit our website at www.DetroitHomeLoans.org or connect
with an Intake Center by calling 2-1-1.
If you own your home and live in a target area, then you can apply regardless of
income.
Eligible Projects
If your home has health and safety hazards, those issues must be addressed first before
other repairs can be made. Below are sample projects:
• Correcting health and safety hazards (required)
• Electrical repairs;
• Furnace replacement;
• Roof replacement;
• Plumbing;
• Door and window replacement, restoration or maintenance;
• Porches and structural support.
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How to Apply:
Intake Forms are available for download at www.DetroitHomeLoans.org.
Printed copies are available at the following City of Detroit Recreation Centers and at
any of the 14 Intake Centers.
•
Crowell Recreation Center - 16630 Lahser, Detroit, MI
•
Northwest Activities Center - 18100 Meyers, Detroit, MI
Farwell Recreation Center - 2781 E. Outer Drive, Detroit, MI
Warren Conner Development Coalition - 4401 Conner Ave., Detroit, MI
Butzel Family Center - 7737 Kercheval, Detroit, MI
Patton Recreation Center - 2301 Woodmere, Detroit, MI
•
Adams Butzel - 10500 Lyndon, Detroit, MI
•
•
•
•
When homeowners have completed their intake forms and compiled the necessary
documentation, they can call an Intake Center to schedule an appointment to review
and submit their documentation.
Intake Forms MUST be submitted to an Intake Center in-person. Intake Centers can
assist with completing the required documentation and will be able to direct
homeowners to additional resources such as financial counseling.
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Intake Centers:
Northwest
Cody Rouge Community Action Alliance
19321 Chicago West
(313)-397-9280
Wayne Metro Community Action Agency
18100 Meyers
(313)-388-9799
New Hope Community Development
19487 Evergreen
(313)-255-6275
Eastside
Jefferson East, Inc.
14628 E Jefferson Avenue
(313)-331-7939
Wayne Metro Community Action Agency
19258 Kelly, Harper Woods
(313)-388-9799
U SNAP BAC
14901 East Warren Ave
(313)-640-1100
Central Woodward
Central Detroit Christian CDC
8840 2nd Avenue
(313)-873-0064
Operation ABLE
4750 Woodward Ave, Suite 207
(313)-832-0922
Detroit Non-Profit Housing Corp
2990 West Grand Boulevard
(313)-972-1111
Wayne Metro Community Action Agency
7310 Woodward, 8th floor
(313)-388-9799
Goodwill Industries of Greater Detroit
7700 2nd Ave, 5th floor
(313)-557-4828
Southwest
Bridging Communities
6900 McGraw Ave
(313)-361-6377
Southwest Economic Solutions
2835 Bagley, Suite 800
(313)-841-9641
SER Metro Detroit
9215 Michigan Ave
(313)-846-2240, ext. 4248
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Information Sessions:
The City has scheduled five information sessions to help Detroit homeowners learn
more about the application process. Homeowners can pick up applications, talk to City
staff, and set application review appointments with Intake Centers.
Tuesday, March 24th
6:00pm to 7:00pm
Samaritan Center, Ford Wellness Center
Gymnasium
5555 Conner – Detroit, MI 48214
Thursday, March 26th
6:00pm to 7:00pm
NW Activity Center Ballroom
18100 Meyers – Detroit, MI 48221
Saturday, March 28th
11:00am to 12:00pm
Don Bosco Hall
19321 W. Chicago – Detroit, MI 48228
Saturday, March 28th
11:00am to 12:00pm
Heilmann Recreation Center
19601 Crusade – Detroit, MI 48205
Near E. State Fair and Hayes
Thursday, March 26th
6:00pm to 7:00pm
Patton Park Recreation Center
2300 Woodmere – Detroit, MI 48209
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Frequently Asked Questions
What is this program?
The Detroit 0% Interest Home Repair Loan Program provides loans to Detroit
homeowners looking to complete home repairs or improvements. Homeowners have
ten years to pay back the loans, which are provided at 0% interest. That means
homeowners pay back only what they borrow.
The program is a city-led partnership with the Detroit Local Initiatives Support
Corporation (LISC), a national nonprofit that helps revitalize low-income communities,
and Bank of America. It is designed to help homeowners address health and safety
issues, fix their homes, and eliminate blight—all while laying a foundation for renewed
private investment in neighborhoods that have struggled to attract private investments.
This is a public-private commitment focused on revitalizing Detroit’s neighborhoods.
Who can apply for the program?
• Homeowners must own and occupy their home for at least six months prior to
applying.
• Low- and moderate- income homeowners can apply no matter where they live in
Detroit. (See chart below for income requirements)
• Regardless of income, homeowners in designated areas in each city council
district can still apply. (See map on last page or visit www.detroithomeloans.org
to enter an address for verification.)
• The minimum credit score is 560.
• Homeowner’s insurance and taxes must be current.
• The homeowner must be able to afford the loan payments.
Detroit 0% Interest Home Repair Loan Income Eligibility Guidelines
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Household Size
1
Annual Income Limit
$37,950
2
3
$43,350
$48,750
4
5
6
$54,150
$58,500
$62,850
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8 or more people
$67,150
$71,500
Why is this program needed?
The 0% Interest Home Repair Loan Program is designed to fill a market gap by
investing public and private funds in Detroit neighborhoods. With just slightly more
than 300 Detroit mortgages approved by private lenders in 2013, many homeowners
are unable to secure traditional financing for critical home repairs.
This program is designed to help Detroit homeowners who have stayed in the city to
invest in their homes and neighborhoods.
What kinds of home repairs are eligible for this loan program?
If the home has health and safety hazards, those issues must be addressed first before
other repairs can be made. The following are sample projects:
• Correcting health and safety hazards (required);
• Electrical repairs;
• Furnace replacement;
• Roof replacement;
• Plumbing;
• Door and window restoration, maintenance and replacement;
• Porches and structural support.
How much can I borrow?
Loans are available between $5,000 and $25,000 for Detroit homeowners who own
and occupy single-family homes. Homeowners who own properties with two units, such
as duplexes, can be eligible for up to $50,000 as long as they live in one of the units.
How soon must the loans be repaid?
Loans are paid back over ten years. There is no fee for paying back a loan early.
Homeowners pay back only what they borrow.
Who’s funding this program?
Funding comes from a variety of sources, including U.S. Housing and Urban
Development Community Development Block Grant funds, as well as grant and loan
dollars from Bank of America and the Local Initiatives Support Corporation (LISC).
What do borrowers have to pay back?
Borrowers are only required to pay back the principal on all loans – you only pay back
what you borrow. The Detroit 0% Interest Home Repair Loan Program’s partners will
absorb most of the costs to operate the program that would normally be charged to
the borrower through interest payments.
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How can I apply?
Beginning in March, applications will be available online and at a number of locations
throughout the city, including Neighborhood Intake Centers, City of Detroit
Neighborhood District Managers’ offices, and City of Detroit Recreation Centers. A full
list of locations can be found at www.detroithomeloans.org.
Applicants must complete the application and submit all required documents to an
Intake Center. Assistance with completing the application is available at Intake Centers
by appointment.
Is there a minimum credit score for this program?
The minimum FICO credit score for this program is 560, which is below the average
credit score of most U.S. consumers. There are free resources available to help you find
your score and understand what it means. Visit the program website or contact a
Neighborhood Intake Center to learn more.
What if my credit doesn’t meet the minimum?
There are resources available to help you improve your credit and financial standing.
An Intake Center can connect you.
Are there any closing fees?
Yes, there is a $150 loan closing fee that the homeowner pays only after the loan has
been approved. There are no other fees or charges, and the loan is provided with 0%
interest. Normally, fees for loans of this size range from $350 to more than $1,000.
Can I hire anyone to work on my home as part of this program?
Contractors performing work as part of the Detroit 0% Interest Home Repair Loan
Program must be on the approved City of Detroit contractor list. Contractors will be
paid directly by the 0% Interest Home Repair Loan Program.
Will I get the chance to sign off on work on my home before contractors are
paid?
Yes. Contractors are paid in installments, but will not be completely paid for work until
both the City and a homeowner sign off that the work has been performed in a
satisfactory manner.
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I just purchased a home in Detroit. Can I apply for this loan?
This program is for Detroit homeowners who have owned and occupied a Detroit
home for at least 6 months.
Are land contracts acceptable forms of ownership?
Yes, as long as the selling homeowner signs off on the loan. Also, the land contract
should be recorded with the Wayne County Register of Deeds.
Will these repairs raise my property taxes?
Most home repairs eligible for this program are considered to be part of normal home
maintenance, so they will not increase the taxable value of a home. If an eligible repair
changes the physical structure or livable space of a home, its taxable value may
change.
How were the target areas selected?
Initially, the program was available only to low- or moderate-income residents. The city
and its partners went back to HUD and asked for ways to qualify as many residents as
possible. The solution was to draw boundaries that encompass neighborhoods where a
majority, but not all, residents are low- or moderate-income. Within these designated
neighborhoods, ANY homeowner can apply regardless of income.
What services will the program provide to borrowers?
The program will provide loan origination and servicing, construction oversight, home
inspections, and mortgage and debt counseling. Counseling services are available to
all applicants at no additional cost.
Why not use just a grant-only program?
Through a 0% interest loan program, the City is able to help more homeowners with
limited funds than it previously could with the grant-only program – which essentially
functioned as a “lottery” due to limited funds. The home repair grant program
maintained a waiting list of thousands of applicants who would not ever be served by
the program. The 0% Interest Home Repair Loan Program will allow the City to make
the greatest possible impact with limited funds on neighborhoods across Detroit.
A limited number of Emergency and Lead Abatement grants are still available to
seniors, those with certain disabilities, and low-income households with children under
the age of six. Visit the city’s website for more information on this limited grant
program.
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If a homeowner has received a grant in the past, are they eligible for the loan
program?
Yes.
If I have a current mortgage on my house, am I eligible for a loan?
If you already have a mortgage, you are still eligible for a loan as long as the ratio of
loan to home value is less than 150%. That means a homeowner with a house valued at
$100,000 who owes $140,000 can still borrow up to $10,000 through the 0% Interest
Home Repair Loan Program.
If I don’t have homeowners insurance, are there resources available?
Yes. Having homeowners insurance is a requirement for most home loans. If you do not
have homeowners insurance, an Intake Center can connect you with information,
including providers, who can help you get your home insured.
Is homeowners insurance required before applying or getting approved?
Homeowners insurance is required for the 0% interest home repair loan. If you do not
currently have insurance, talk to an Intake Center representative about your
circumstances. You can also check with Michigan Basic Property Insurance Association
as a short-term alternative. Visit http://1.usa.gov/1BBVzKX for more information.
If you have been denied insurance for your property two or more times, the program
may be able to help you qualify. You may even be able to include the first year’s
payment for homeowners insurance in the home repair loan. Two denial letters must be
provided, along with a quote from Michigan Basic.
What happens if the homeowner stops making payments on the loan?
The applicant is responsible to repay the loan as agreed. The loan will be reported on
the applicant’s credit report and a lien put on the property. If an applicant fails to
repay, the lien will remain on the property and prevent future transfer or sale of the
property. All efforts will be taken to collect the loan to the full extent of the law. If a
loan becomes past due, support will be provided to the applicant to bring the loan
current and ensure they continue to make payments so the homeowner can remain in
their home.
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Are there income limits or can any homeowner apply?
Low-income homeowners can apply no matter where their home is in Detroit, as long
as their household income is within the following threshold:
Household Size
Income Limit
1 Person
2 People
$37,950
$43,350
3 People
$48,750
4 People
$54,150
5 People
6 People
7 People
$58,500
$62,850
$67,150
8 or more
$71,500
If the homeowner lives within a target area, they qualify to apply regardless of their
income.
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